Dear FRONTLINE,

As a business owner involved in wholesaleing to small business I am concerned about the 2.25% I pay on every trasaction that are made with customers using a credit card. This amounts to as much at 25% of my gross margin. The banking industry's goal is to have all of us use our credit card exclusivly. Think about it! 2.25% everytime a dollar changes hands. This cost must be passed on to consumers in the form of higher prices. For the benefit of our economy we must try to get control of our credit cards and understand ALL the consequences.

Lee Selisky
Minneapolis, MN

Dear FRONTLINE,

In my opinion, the practices of credit card companies, discussed on your program, is the explanation for the diminishing middle class. People who criticize others with low credit scores as being irresponsible about their finances have got to be naive or un-educated about "real life" situations that contribute to a person’s ability to pay their debts on time. One should undeniably be punished for blatant misuse of credit, but down on ones luck should not provide an open door to predator creditors that make it almost impossible for someone to recover, especially if that individual has a family. Attaching an “unfair“ higher interest rate to their debt should be stopped. When are people going to stop supporting out of control corporations and politicans and start supporting each other? How many more abuses will Americans allow before pulling their heads out of the sand and doing something about the Providian‘s, Enron‘s, and celebrities who are allowed to get away with robbery, murder, and least of all misconduct.

Deborah Holbrook
Florence, SC

Dear FRONTLINE,

The basic premise of this program was that we simple-minded citizens are the unknowing victims of deceptive practices on the part of the credit card companies. What a load of feel good dribble! The credit card companies are as much to blame for consumer debt as alcohol distributers are for drunk driving. Access is not an excuse for irresponsible behavior. Excuses such as "the credit card contact is misleading" or "the interest rate can change unexpectedly" mask the real problem that some in our society want to have everything now and deal with the consequences later. The simple but apparently uncommon solution to the problem of credit card debt is to stop spending money not yet earned.

South Berwick, Maine

Dear FRONTLINE,

It's disgusting how credit card issuers contribute to the default of their borrower's debts.

Jane has 10K at 9% with Bank A, and 10K at 4% with Bank B, and Bank A decides she now deserves to be at 29.99% that changes the whole recipe.. usually one for disaster.

Where is the logic that says "oh you're a bigger risk, so here, let's help you default on this: We're going to rate-jack you, oops, now you're over your limit, here's another $39 bucks for you. Now your minimum payment isn't 100.00, it's 300.00, and since you only sent us 200.00, we're tacking on a late fee of $29.00, next month, your bill is going to be 450.00 because you're over your limit again, and the interest fees...... "

Yes, very logical move, Bank sees potential for trouble, and actually puts the motions in place for the default to happen.

Logical move would be, Jane, we see you as a higher risk, we're going to lower your credit limit from 10K to your current balance of 4K and keep you at the same rate.

And they have the gall to suggest they don't understand why so many turn to bankruptcy?

Lowell, ma

Dear FRONTLINE,

Thank you for presenting the truth about credit card company practices. I would like to add that FICO uses a secret set of rules to set a persons credit score. The credit issuing industry uses this score as a benchmark to set the interest rates they charge. However, rate shopping for a loan or a credit card, even though it results in a lower interest expense to the consumer, can lower the FICO score because "too many recent credit inquires indicates a risk in credit worthiness". This causes a catch 22 situation. Also, if a higher interest credit card is replaced with a lower interest card that also lowers the FICO score because "accounts with longer track records count more and the new account will be short making it count less". These ridiculous FICO rules are welcomed by the credit industry. It's part of their overall scheme to lower your credit score therefore generating more revenue.

Jason James
Little Rock, AR

Dear FRONTLINE,

We're one of those very financially responsible, 2-income families that was hit with a cancer diagnosis and within 6 months, the job loss of our primary earner. We used our credit cards for things that we never would have thought, like groceries, one month the mortgage, uncovered medical expenses. We're now earning close to our former income, but we have credit card debt. We're working hard to eliminate it. The idea that a credit card company is poised, at the ready to raise our interest rates and attach fees and basically drag our family down is abhorrent. We scrutinize every credit card statements. By the way, what was the contact information for the Office of the Comptroller of the Currency?

pelham, nh

Dear FRONTLINE,

I watched this on SD pbs tonight about Credit cards. I happen to be a collector, and one thing I learned people are afraid to answer there phones. If some of them would just call the # they see on the phone.They may be surprised there are some good collectors out there that want to help. There are programs that can help get this under control. It's when they dont return the calls after several months of being deliquent. It's their own fault they are getting late fees/over limit fees/ and etc. Think about what would be better to ignore the problem or face it head on?

Bloomfield, Nebraska

Dear FRONTLINE,

Frontline's usual expert study of a truly significant and horribly unfair situation allowed and fostered by our loyal protectors in Congress. Since our government lives and operates in a state of constant, enormous, debilatating debt - what more could we expect from them? Maybe Uncle Sam should get a super credit card with a 10 trillion dollar limit and make minimum payments into the year 3,000! Guess what, I think they already have one!

David Tomaine
Archbald, PA

Dear FRONTLINE,

More regulation is not the answer. Education is. Instant gratification is not a "need" to be satisfied through government regulation of card companies, and a credit card is not a solution for the lack of adequate income. Necessities should not be bought on credit and people who lack adequate income need to either change their lifestyles in order to go out and earn more income, or change their priorities so they pay cash instead of charging everything. If you think about it, most advertising we see on TV and in the papers is very deceptive and misleading, if not a bold-faced lie. No agency regulates that stuff (effectively). Why should credit cards be any different?

Kip Child
Westwood, MA

Dear FRONTLINE,

I found this program to be quite informative. I am employed by a local credit union whose terms on "in house" credit cards are simple, easy to understand, and quite protective of the consumer, or as we prefer, the member. The information presented on Frontline parallels the information I personally try to educate my clients with. Thank you for bringing the "plague" of credit card debt to the general publics attention.

Enon, Ohio

Dear FRONTLINE,

I am banker for one of the largest lenders in the United States. I help clients consolidate debts through a variety of equity programs that will be secured with their real estate. As bankers we look at rate vs. risk. A secured line should always carry a better rate than any unsecured debt. However, I am quite concerned about the huge amount of debt that is carried on cards and the clear deceptive tactics that the card companies have undertaken to clearly show huge gains for their share holders. Until legislation is put in place this practice will only continue. With the large Lobby efforts in Washington and as long as the large lenders have the funds to hire the brightest MBA's and Attorneys I am quite pessimistic about a quick resolution to this problem.

Mark Chase
Fishers, IN

Dear FRONTLINE,

The shocking truth about credit cards is not that banks can charge usurious interest rates and loan-shark fees. The real shocking truth about credit cards is that Americans are ill-prepared to manage their own finances. The math necessary to calculate the impact of a 30% annual interest rate is taught in 5th grade. The application of that math to consumers in the real world should be a required course in high schools throughout the US.

Credit card companies could be regulated to educate consumers, the way that mutual fund companies have been required to educate their customers through standardized reporting and simplified summaries of fund results. But it would be better still if credit card consumers were educated about the value, costs and risks of credit before they took out their first card.

Chris Williams
Andover, MA

Dear FRONTLINE,

The games they play do not shock me at all because they always did what they wanted anyway. What did shock me was that they had someone to "answer" to (OCC). What a joke that was. It makes you wonder who is behind the OCC? I just received a solicitation for a 0% interest on balance transfers for the life of the transfer but in the FINE print it stated will expire in march 05 unless I made two purchases starting in march and two purchases for every month there after. It makes me feel good knowing that [card issuer removed] wants me to have new things every month.

Peter Cruz
Bronx, NY

Dear FRONTLINE,

i was able to get out of credit card debt by paying more than the minimum monthly payment, "rate surfing," and eliminating card usage. now, i only accept 0% introductory offers with cards that i currently own and only for the purpose of saving the money to earn interest. one month before the 0% rate ends, the balance is paid in full and i wait for the next offer (and they always come).

Saginaw, mi

Dear FRONTLINE,

One of the "bad practices":

You are offered 0% annual balance transfer and you transfer a large amount. You also make purchases with the same card - which is at a higher rate. When you pay, you do not have the option of choosing the transaction (0% balance transfer or the higher rate purchase) towards which your payment goes to. It goes to the lowest rate (which in this case is the 0% balance transfer) while your purchases keep on accumulating interest at the higher rate until you pay off the larger amount you transferred - supposedly to save money.

Very very dishonest - this is entrapment - you lure someone and slowly bleed him.

Gidilat Naboridius
Boston, MA